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Let's see if I can follow you -
1. This all started with moving to a new host and the error page says you have DB connection issue.
2. You can connect to your new site via FTP, cpanel and phpmyadmin
3. You have confirmed your XOOPS_DB_HOST, XOOPS_DB_NAME, XOOPS_DB_USER, XOOPS_DB_PASS, and XOOPS_DB_PREFIX in mainfile.php and they all correspond to your phpmyadmin db host, db name, username, password, and prefixes for your XOOPS tables
4. You have confirmed your physical path for XOOPS_PATH (and it appears to be working because you get a XOOPS error page)
5. You have emptied out your cache folder and templates_c folder on your server and verified they have proper permissions set
6. Your PM said you were installing another site - can you access that site?